Indices may open on strong note

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could jump 163 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading higher Thursday after the Federal Reserve pledged to keep monetary policy and rates unchanged and projected a rapid jump in U.S. economic growth this year as the COVID-19 crisis eases.

In US, the S&P 500 and Dow Jones Industrial Average closed at record highs on Wednesday after the Fed predicted a fast economic recovery from the coronavirus pandemic and said it would maintain its interest rate at close to zero. It was the first time the Dow closed above 33,000 points.

While the Fed expects benchmark interest rates to remain near zero for the next two years, the central bank upgraded their economic outlook to reflect expectations for a stronger recovery from the pandemic-triggered recession. Gross domestic product is expected to grow 6.5% in 2021 before cooling off in later years.

Fed Chair Jerome Powell said in a press conference that the Fed would need to see a material and sustained move in inflation above 2% before considering changes to its current easy policy stance.

Domestic markets:

Back home, domestic stock market ended with heavy losses on Wednesday, sliding for the fourth straight session amid a broader selloff. The barometer index, the S&P BSE Sensex, tumbled 562.34 points or 1.12% at 49,801.62. The Nifty 50 index lost 189.15 points or 1.27% at 14,721.30.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,625.82 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 562.15 crore in the Indian equity market on 17 March, provisional data showed.

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